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Audit 5.0 in Risk and Materiality Assessment: An Ethnographic Approach

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  • Maria C. Tavares

    (Higher Institute for Accounting and Administration of University of Aveiro (ISCA-UA), 3810-902 Aveiro, Portugal
    Research Unit on Governance, Competitiveness and Public Policies (GOVCOPP), 3810-193 Aveiro, Portugal)

  • Maria F. R. Almeida

    (Higher Institute for Accounting and Administration of University of Aveiro (ISCA-UA), 3810-902 Aveiro, Portugal)

  • José Vale

    (CEOS.PP—Centre for Organisational and Social Studies of Polytechnic of Porto, Porto Accounting and Business School, Polytechnic Institute of Porto, 4465-004 Matosinhos, Portugal)

  • Amra Kapo

    (School of Economics and Business, University of Sarajevo, 71000 Sarajevo, Bosnia and Herzegovina)

Abstract

The historical evolution of auditing reflects an increasing complexity in organizational demands, culminating in the emergence of Audit 5.0—an approach that integrates emerging technologies with professional judgment. This study aims to analyze how technological adoption influences risk assessment and materiality determination in financial auditing within a practical, real-world context. The research, qualitative in nature, combines narrative and thematic analysis of the literature, ethnography in a professional setting, and task analysis, developed over four years of experience in a firm of Chartered Accountants. The findings reveal that although digital tools enhance efficiency and accuracy, professional judgment remains essential to ensure the ethics, reliability, and contextualization of audited information. This study contributes to the advancement of understanding regarding the complementarity between technology and the human factor, proposing paths toward more robust and digitally adapted auditing practices.

Suggested Citation

  • Maria C. Tavares & Maria F. R. Almeida & José Vale & Amra Kapo, 2025. "Audit 5.0 in Risk and Materiality Assessment: An Ethnographic Approach," JRFM, MDPI, vol. 18(8), pages 1-25, July.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:8:p:419-:d:1712263
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    References listed on IDEAS

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    1. Giacomo Manetti & Lucia Becatti, 2009. "Assurance Services for Sustainability Reports: Standards and Empirical Evidence," Journal of Business Ethics, Springer, vol. 87(1), pages 289-298, April.
    2. Maria C. Tavares & Graça Azevedo & Rui P. Marques & Maria Anunciação Bastos, 2023. "Challenges of education in the accounting profession in the Era 5.0: A systematic review," Cogent Business & Management, Taylor & Francis Journals, vol. 10(2), pages 2220198-222, December.
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